Brazil’s Central Bank Provided Mercado Bitcoin with a Financial License

Updated: 03 June 2023

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Brazil’s largest cryptocurrency exchange, Mercado Bitcoin, just received a license to operate as a payment institution.

The license was issued by the country’s central bank yesterday, June 2nd.

According to local reports, the company is now authorized to operate as a payment institution, holding a status of an electronic money issuer.

🇧🇷 Mercado #Bitcoin, Brazil’s largest #crypto #exchange, was licensed as a payment institution by Brazil’s central bank.

The company is now authorized to operate as a payment institution, under the status of an electronic money issuer. pic.twitter.com/EBc8JSkmlL

— Cryptic (@Crypticsmma) June 3, 2023

Mercado Bitcoin’s new license is an important step

South American countries have been a very attractive region for the crypto industry, almost as much as Africa.

With many regions struggling financially due to being underbanked or unbanked, these nations attracted the attention of the crypto sector, which could make a change and include its people in the global financial market.

With Mercado Bitcoin receiving a license to operate as a payment institution, Brazilian crypto users will get a new licensed crypto exchange to make their crypto dealings easier.

Roberto Dagnoni, the exchange’s CEO, stated,

The central bank’s approval is an important step, as it allows us to continue with our business expansion plans to offer an even more complete experience to our customers.

https://twitter.com/Blocknitycom/status/1664915943808544769

The platform already operates MB Pay, which is a digital account that allows over four million users to buy digital coins and invest in digital fixed-income and multiple asset classes.

Dagnoni further noted that Marconi Bitcoin intends to offer financial services that would combine the potential of the crypto industry with traditional financial services.

This includes crypto payment cards, which the platform plans to launch in a few months’ time.

Brazil’s online payments are evolving

Mercado Bitcoin emerged as the crypto trading arm of Mercado Pago, reportedly the largest online payment platform in entire Latin America.

It launched Mercado Bitcoin in late 2021; by November 2022, the exchange had also entered the Mexican market.

The expansion has been extremely successful, and by the end of the first month in Mexico, the exchange brought in 150 thousand users to its app.

These days, Mercado Pago is looking for a similar bump in another nation — Chile.

The e-commerce platform intends to proceed with its gradual rollout in “aggressive growth,” as the company’s president, Osvaldo Gimenez, called it.

Brazil has recently seen several more crypto-related moves, such as Binance’s payment provider, Latam Gateway, receiving a similar license.

The company is a facilitator for foreign firms seeking to operate in Brazil.

Meanwhile, Latam Gateway acts as an on/off ramp for the local currency.

There is also the government’s payment system called Pix, which was the reason why Binance suspended deposits and withdrawals in Brazilian reals last September.

This payment blockage happened around the same time as the central bank’s deadline imposed on Pix providers to implement new KYC requirements.

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